Supply Chain Management
A Case Study of an MNC's Lower-Tier Suppliers – BIG GAP
“We visited their lower-tier suppliers, all of which had marginal environmental practices, lacked procedures for addressing red-flag social issues such as sexual harassment, retaliation by supervisors, and hazardous labor, and had dangerous working conditions, chronic overtime issues, and no systematic accident reporting.”
The selected MNC for the study met these five criteria:
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Inclusion in the Dow Jones Sustainability Index.
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Membership in CDP and the UNGC.
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Involvement in industry-wide supply-chain sustainability efforts.
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Certification of a large percentage of plants with effective QMS (ISO 9001), EMS (ISO 14001), and safety management (OHSAS 18001).
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Membership in the Billion Dollar Roundtable.
Source: Harvard Business Review
Supply Chain Management
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Suppliers survey
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Procurement Policy
Sustainable practices begin with a robust supply chain
In the complex world of supply chains, sustainability affects environmental, social, and economic aspects. Consider the impact of partnering with a supplier who pollutes rivers with toxic waste or exploits child labor. These ethical breaches not only harm communities and the environment but also damage your company’s reputation and trust. Upholding ethical standards throughout your supply chain isn’t just a choice—it’s crucial for maintaining integrity, reducing risks, and promoting a sustainable future. Developing a sustainable procurement policy that aligns with environmental, social, and ethical standards is very challenging. Without comprehensive knowledge of the requirements, it can seem like an impossible mission.
What are our solutions to close the gap :
1. Supplier Assessment Services through Surveys
We help businesses ensure that their suppliers meet the highest standards of sustainability, ethics, and corporate governance. Our comprehensive Supplier Assessment Questionnaire (SAQ) evaluates suppliers across essential areas such as management systems, human rights, labor practices, environmental responsibility, and fair business practices.
Our assessments are based on globally recognized frameworks like the Global Reporting Initiative (GRI) Standards and the UN Guiding Principles on Business and Human Rights. By leveraging these international benchmarks, we provide you with clear, actionable insights into your suppliers’ performance and maturity in key sustainability metrics.
With IvyGreen Solutions, you can count on enhanced visibility across your supply chain and the confidence that your suppliers align with your company’s values. Our assessments are designed to reduce risk, promote continuous improvement, and ensure that your business is not just meeting current sustainability standards but is also well-prepared to tackle the challenges of tomorrow.
Green Vendor Rating
We conduct supplier performance evaluations and reflect the results using a comprehensive radar chart. This chart captures key sustainability metrics across ten critical areas, including Sustainability Management Systems, Human Rights, Labor Practices, Environmental Impact, and more. By leveraging this visual and data-driven approach, we provide clear insights into supplier strengths and areas for improvement, ensuring alignment with your sustainability goals. Our method evaluates suppliers against global standards, helping you make informed decisions that support your company’s commitment to ethical practices and sustainable operations.
In addition to the rating, it provides a detailed vendor profile overview that allows you to quickly identify which suppliers are making significant efforts to support your company’s growth and which may present risks due to poor performance. This overview provides a quick glance at the overall status and reliability of each supplier, enabling you to make strategic decisions that minimize risks and maximize your company’s success.
2. Sustainable Procurement Policy – Procuring the Future
What is Sustainable Procurement:
“A process whereby organizations meet their needs for goods, services, works and utilities in a way that achieves value for money on a whole life basis in terms of generating befits not only to the organizations, but also to society and the economy, whilst minimizing damage to the environment.”
Our services – Greening the Economy
We help businesses implement comprehensive procurement policies that align purchasing decisions with sustainability goals. Our approach is informed by global frameworks from the United Nations, promoting transparency, traceability, and due diligence in sustainable procurement practices. These guidelines ensure that your supply chain meets ethical and environmental standards, positioning procurement as a key driver of sustainability.
In addition to energy conservation, CO2 reduction, and resource preservation, our policies provide a minimum set of common criteria for selecting sustainable suppliers. This approach helps you meet the growing demands from governments and consumers for products and services that deliver value for money while adhering to key environmental, social, and health standards.
Our methodology includes detailed supplier requirements, such as establishing Environmental Management Systems (EMS) and complying with rigorous standards in areas like CO2 emissions reduction, biodiversity conservation, and water resource management. These practices foster transparency and accountability, with suppliers required to disclose their environmental efforts and undergo performance evaluations for continuous improvement.
By integrating structured environmental efforts and practical considerations—such as recyclable materials and energy efficiency—into your procurement process, we help reduce your operations’ environmental impact. With a strong focus on sustainability throughout the supply chain, we support your company’s long-term environmental objectives, ensuring a responsible and sustainable future.
Scope: Our sustainable procurement policies apply to all products and goods that your company procures, including materials, components, units, accessories, packaging, OEM/ODM products, equipment, software, and services. This policy cover every aspect of procurement, from the sourcing of raw materials to the delivery of finished products, ensuring that sustainability is embedded in every step of the supply chain.
Benefits
Simplified Exchange of Information
Green procurement policies streamline communication between your company and suppliers by setting clear sustainability criteria and expectations. This simplifies the process of exchanging information related to environmental standards, certifications, and compliance. As a result, both parties can efficiently align on sustainability goals, reducing the time and resources spent on verification and ensuring transparency across the supply chain.
Streamlined Procedures and Smooth Electronic Tendering
The implementation of green procurement often involves adopting digital tools and platforms for tendering processes. These tools enable smooth, electronic tendering that is not only efficient but also minimizes paper use and reduces administrative overhead. Streamlined procedures ensure that procurement activities are more organized, less time-consuming, and better aligned with sustainability objectives, resulting in faster, more reliable procurement cycles.
Assurance of Quality
Green procurement emphasizes the selection of suppliers who adhere to high environmental and social standards. By prioritizing these suppliers, your company is more likely to receive high-quality products and services that meet both sustainability and performance criteria. This focus on quality assurance helps reduce the risk of defects, returns, and non-compliance, thereby contributing to more sustainable and reliable supply chains.
Increased Market Competitiveness
Companies that adopt green procurement practices can differentiate themselves in the marketplace by demonstrating a commitment to sustainability. This can attract environmentally conscious consumers and partners, enhancing your company’s reputation and competitive edge. Additionally, green procurement can lead to cost savings through resource efficiency, waste reduction, and energy conservation, further improving your market position
Improved Supplier Relationships
By engaging in green procurement, your company fosters stronger relationships with suppliers who share your commitment to sustainability. These partnerships are built on mutual goals and transparency, leading to more collaborative and long-term relationships. Improved supplier relationships can result in better pricing, more consistent quality, and enhanced innovation in sustainable practices.
Positive Environmental Impact
Green procurement contributes directly to reducing your company’s environmental footprint. By choosing suppliers who prioritize sustainability, you support the reduction of greenhouse gas emissions, conservation of natural resources, and minimization of waste throughout the supply chain. This positive environmental impact not only benefits the planet but also aligns your company with global sustainability goals and regulatory requirements.
Our 10 pillars
- Management Systems for Sustainability
- Human rights
- Labor
- Occupational health and safety
- Environment
- Fair business practices
- Quality and safety
- Information security
- Supply chain
- Harmonious coexistence with local communities
Our customized supplier surveys provide the guidance from meticulously assess sustainability performance, guiding informed decision-making and fostering partnerships with responsible suppliers.
Additionally, our customized training programs empower suppliers to implement best practices, ensuring best understanding and align with client sustainability goals.
Through these integrated approaches, we help businesses build resilient and responsible supply chains that drive positive environmental and social impacts while safeguarding their reputation and operational integrity.